IHG Continues its Franchise Growth Strategy

26 October 2004

InterContinental Hotels Group, the world’s largest and most global hotel company,
continues to grow its Americas region through franchising. The Americas
region recently announced it has 458 properties (48,178 rooms) in the
pipeline (as of June 30, 2004).An already strong region with 2,800 hotels (390,941 rooms) in 25
countries, the Americas continued its growth momentum at a steady pace
from January - June 2004, with the opening of 73 hotels (8,000 rooms).
“IHG’s phenomenal growth through franchising can be attributed to its ability
to support its hotel network with efficient business practices, and its
historical strength as a collaborative franchisor,” said Kirk Kinsell, SVP,
Americas Franchise and Business Development, IHG. “We are seeing robust
interest and steady development across all of our brands.”
IHG’s continued development momentum is evidenced across all seven
hotel brands (as of June 30, 2004):

- InterContinental Hotels & Resorts, the IHG brand with international
understanding, has five hotels in the pipeline to complement its existing 44
upper upscale segment hotels.

- Crowne Plaza continues to differentiate its brand offering as THE PLACE
TO MEET and now the Crowne Plaza Sleep Advantage? program. Crowne
Plaza is expanding its North American portfolio with 18 hotels in the pipeline
to complement its existing 111 hotels.

- Holiday Inn “America’s Favorite Hotel” continues its growth momentum
with 91 properties in the pipeline to complement its 1,101 existing middle
market hotels. The rejuvenation of the brand and the evolution of the
prototype have helped further its success.

- Holiday Inn Express, the fastest-growing hotel brand in the limited-service
hotel category, has 264 properties in the development pipeline. It
continues to open an average of two hotels per week, and has grown to over
1,300 hotels since its introduction in the early 1990s.

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- Hotel Indigo, an industry first, is a lifestyle brand that delivers a
refreshing, inclusive hotel experience in response to prevailing consumer
trends. To date, two Hotel Indigo hotels are under development and the first
Hotel Indigo will open in Atlanta in October 2004 and the second in Chicago
in Spring 2005.

- Staybridge Suites reached 75 hotels faster than any other extended-stay
competitor in the upscale extended-stay segment with 77 now open and an
additional 50 in the pipeline.

- Acquired by IHG late last year, Candlewood Suites, mid-scale extended-
stay brand, has 112 open hotels with another 29 properties in the pipeline.

Helping further the success and momentum of its brands, IHG’s integrated
approach helps unify marketing initiatives so that hotels benefit from each
others efforts and learn from each other—while keeping the brands distinct
and differentiated to their customer segments. This is done by offering
current and prospective franchisees a multi-brand marketing platform
comprised of its Enterprise Values - technology, global reservations
centers, global sales, performance support, and Priority Club® Rewards; as
well as, fostering a collaborative, Together We’re Stronger relationship with
its hotel owners.——-